A debt consolidation plan in Singapore moves all your credit card and unsecured loan balances to one bank, at a lower rate, with one fixed monthly repayment. It is only open to people whose interest-bearing unsecured debt exceeds 12 times their monthly income.
The rules are set by the Association of Banks in Singapore (ABS) and are the same everywhere. What differs between banks is the rate, the tenure and the fees, so “best” here means the lowest total repaid on an instalment you can keep up.
A caution on borrowing: a plan lowers the interest. It does not shrink the debt, and it runs for years. It works only if spending on credit stops.
How a Debt Consolidation Plan Works in Singapore
ABS describes the Debt Consolidation Plan (DCP) as a debt refinancing programme. One participating institution pays off your balances at all the others, and you repay that one institution.
The main rules, as at November 2026:
- All or nothing. The plan must cover all eligible debts and be taken with one institution. Partial consolidation is not allowed.
- The money goes to your creditors. It is not paid to your account.
- A 5% allowance is added to the first plan, to cover interest and fees that accrue before the old accounts are paid off. Any unused part is refunded.
- Other unsecured credit is closed or suspended. You stop using existing facilities once you decide to take up the plan.
- One small credit facility remains. You are given a revolving credit facility fixed at one month’s income. It cannot be cancelled.
- One plan at a time. A central registry prevents a second active plan.
ABS lists 17 participating institutions, including DBS, OCBC, UOB, Citibank, HSBC, Standard Chartered, Maybank, CIMB, Bank of China, ICBC, RHB, HL Bank, American Express, Diners Club and the digital banks GXS, MariBank and Trust Bank.
Who Qualifies
ABS sets four conditions:
- Singapore Citizen or Permanent Resident.
- Annual income of S$20,000 to under $120,000.
- Net personal assets below $2 million.
- Total interest-bearing unsecured debt above 12 times monthly income.
Meeting them does not guarantee an offer. Each bank assesses applications itself. Both banks whose pages we read ask for an income of at least $30,000.
Excluded debts: renovation, education and medical loans, business credit and joint-account debts.
What Two Banks Publish
We looked for banks that publish a DCP rate together with an EIR. On 13 November 2026 we could read these two pages. Other participating institutions offer plans too; their figures are not shown because we could not confirm them on their own pages.
| UOB | OCBC | |
|---|---|---|
| Published rate | From 4.50% a year, fixed, for 1 to 6 years | 4.50% a year |
| Published EIR | 8.22% a year (6 years) | 8.41% (3 years) to 8.06% (8 years) |
| Longer tenures | 7 to 8 years at 5.50%; EIR 9.67% | Up to 8 years |
| Tenure range | Up to 8 years | 3 to 8 years |
| Income required | $30,000 to under $120,000 | $30,000 to $120,000 |
| Other terms listed | Tiered-rate option with a lower first year | 5% termination fee on the outstanding loan; $200 late charge |
The 4.50% is a flat rate, charged on the original loan for the whole tenure. That is why the EIR is close to double. MoneySense advises comparing on EIR.
Read the revolving facility’s terms as well. OCBC’s page lists its debt consolidation card at 26.88% a year, the same order of cost as an ordinary credit card.
The Cost, Worked Through
An illustrative borrower earns $4,500 a month and owes $60,000 across four cards and a credit line. That is 13.3 times monthly income, so the 12-times test is met.
Staying put. At a card rate of 26.9% a year, interest alone is about $1,345 a month. Paying only that amount never reduces the debt.
On a plan at 4.50% flat for six years:
- Interest: $60,000 × 4.5% × 6 = $16,200
- Monthly instalment: $76,200 ÷ 72 = $1,058
- Total repaid: $76,200
The instalment is lower than the card interest alone, and the debt is cleared in six years. The EIR on these cash flows is about 8.2%, matching what the banks publish.
Over eight years at the 5.50% UOB lists for longer tenures, the instalment falls to about $900, but interest rises to $26,400. A longer plan is easier each month and costlier in total.
This is an illustration only. It ignores the 5% allowance and any fees. Our debt payoff calculator lets you test your own balances.
The short version: Every debt consolidation plan follows the same ABS rules. Compare banks on EIR and total repaid for the same tenure, check the early termination fee, and choose the shortest tenure whose instalment you can pay every month without borrowing again.
The Catches
- Your cards go. For the life of the plan, day-to-day credit is limited to one month’s income.
- New credit is restricted. ABS says you can apply for new unsecured credit with other lenders only once your balance falls to 8 times monthly income or below, and with the plan’s own bank once it is below 4 times.
- It shows on your credit report for three years after closure.
- Fees to leave. Refinancing to another bank is allowed after three months, but the first bank’s termination fee cannot be rolled into the new loan.
- Payments continue during the application. Keep paying at least the minimum on existing accounts until approval.
If You Do Not Qualify
- Debt below 12 times income: a balance transfer or a personal loan can be used to clear card balances at a lower rate, without the plan’s restrictions.
- Cannot afford the plan’s instalment: Credit Counselling Singapore runs a Debt Management Programme for people with at least $10,000 of unsecured debt owed to two or more creditors. A counsellor proposes a repayment schedule to the banks, which decide whether to accept it.
- Rejected by banks: read loans with bad credit before turning to other lenders.
What To Do Next
- Add up every interest-bearing unsecured balance and divide by your monthly income. Above 12, you may qualify.
- Use our budget planner to find the instalment you can pay every month.
- Ask two or three participating banks for the rate, EIR, total repayable and early termination fee on the same tenure.
- Cancel GIRO and recurring card payments yourself and move them to a debit card or bank account. ABS notes the bank does not do this for you.
- If no plan fits, call Credit Counselling Singapore on 6225 5227 or start with one of its free debt management talks.
